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UBER Incurs Wider-Than-Expected Loss in Q4, Revenues Miss

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Uber Technologies, Inc. UBER incurred a loss of 54 cents per share in the fourth quarter of 2020, wider than the Zacks Consensus Estimate of a loss of 53 cents. However, the loss narrowed by 15.6% year over year. Meanwhile, total revenues of $3,165 million missed the Zacks Consensus Estimate of $3,576.1 million. The top line dropped 22.2% year over year due to weakness in the ride-hailing segment, thanks to coronavirus keeping most people homebound.

Following an organizational change in the third quarter of 2019, Uber, carrying a Zacks Rank #3 (Hold), started reporting through five segments, namely, Mobility (formerly Rides), Delivery (formerly Eats), Freight, Advanced Technologies Group (“ATG”) and Other Technology Programs, and All Other (formerly Other Bets). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

In the fourth quarter, majority (46.5%) of the company’s revenues came from Mobility. Revenues from this segment dropped 52% year over year to $1,471 million. Revenues from the Delivery segment, which is experiencing a boom with online order volumes from homebound customers surging, skyrocketed more than 200% year over year to $1,356 million. Meanwhile, Freight revenues climbed 43% to $313 million. Rest of the revenues came from the ATG and Other Technology Programs segment.

Uber Technologies, Inc. Price, Consensus and EPS Surprise

Uber Technologies, Inc. Price, Consensus and EPS Surprise
Uber Technologies, Inc. Price, Consensus and EPS Surprise

Uber Technologies, Inc. price-consensus-eps-surprise-chart | Uber Technologies, Inc. Quote


Total revenues declined 26% year over year to $1,814 million in the United States and Canada. While revenues fell 43% to $302 million in Latin America, it increased 25% to $664 million in Europe, the Middle East and Africa. Moreover, the same soared 70% to $385 million in the Asia-Pacific region. Monthly active platform consumers declined 16% to 93 million.

Gross bookings from Mobility declined 50% to $6,789 million. Meanwhile, gross bookings from Delivery augmented more than 100% to $10,050 million. Gross bookings from Freight also climbed 43% to $313 million. Total gross bookings slipped 5% to $17,152 million.

Cost of revenue (excluding depreciation and amortization) decreased year over year. Total costs and expenses declined 14.3% year over year to $4,042 million with sales and marketing expenses falling 17% and research and development expenses decreasing 20.5%. On another positive note, adjusted EBITDA loss narrowed by 26% year over year to $454 million in the reported quarter.

Uber exited the fourth quarter with cash and cash equivalents of $5,647 million compared with $10,873 million at the end of 2019. Long-term debt, net of current portion at the end of the quarter, was $7,560 million compared with $5,707 million at 2019-end.

The company continues to be hopeful about its ability to achieve adjusted EBITDA profits in 2021.

Performance of Other Computer & Technology Stocks

Within the broader Computer and Technology sector, AMETEK, Inc. AME, T-Mobile US, Inc. TMUS and Carrier Global Corporation CARR recently reported earnings numbers.

AMETEK’s fourth-quarter 2020 adjusted earnings of $1.08 per share beat the Zacks Consensus Estimate by 4.8%. Net sales of $1.19 billion missed the Zacks Consensus Estimate of $1.2 billion. The stock carries a Zacks Rank #3.

T-Mobile, carrying a Zacks Rank #4 (Sell), reported adjusted earnings of $1.03 per share in the fourth quarter, beating the Zacks Consensus Estimate by 52 cents. Quarterly revenues of $20,341 million surpassed the consensus estimate of $19,966 million.

Carrier Global, carrying a Zacks Rank #3, reported fourth-quarter 2020 adjusted earnings of 31 cents per share, which missed the Zacks Consensus Estimate by 16.2%. Net sales of $4.6 billion beat the consensus mark by 0.3%.

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